Advanced search

Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

AIBU not wanting to pay Early Repayment Charges on a portable mortgage?

(7 Posts)
phoebebouffet Thu 12-Sep-13 00:25:34

Wasnt sure where to post this, as its clearly AIBU but was hoping for the financial expertise in this section. I was under the impression that you could move house taking your current mortgage deal with you before the end of a deal, providing it is portable. We have a mortgage offer in place, in fact completion is date is supposed to be Monday, they have agreed further borrowing and charged us extra fees which Im not over the moon about but at least they were set out from the begining and have known about from the start.

Today we arrived at the solicitors they presented us with the final settlement figure that now includes £1500 Early Repayment Charge, I thought that's what a portable mortgage was all about and if they are applicable shouldn't they be in the mortgage offer.

Thanks in advance prob wont be able to sleep worryin about this but off to be anyway.

fuckwittery Thu 12-Sep-13 06:25:12

No, you shouldn't usually be charged early repayment fees if you are porting your mortgage and its portable. I'd ring your mortgage co direct to check and get your solicitor to confirm, hopefully its just an error as the solicitor may have asked for a redemption figure and somewhere the message that you are porting has got lost.

Rangirl Thu 12-Sep-13 08:20:08

Get your solicitor to check. The mortgage co will always put the early repayment fee on the red statement on basis that it is due unless you meet the conditions for it not to (if that makes sense) Say you complete your sale and purchase falls through for example As long as you meet the conditions it will not be payable Normally both new mortgage has to be taken out on the same day or a very short period later

RedHelenB Thu 12-Sep-13 08:21:41

Surely the early repayment charge applies if you want to pay the mortgage off before the fixed rate ends or want to switch to another provider?

fuckwittery Thu 12-Sep-13 12:57:39

Redhelen, OP I think is keeping a mortgage with the same provider on her new purchase, so unless the mortgage is for susbtantially less, a portable mortgage can be ported from one property to another without early repayment charge.

phoebebouffet Thu 12-Sep-13 18:22:48

Thank you all for replying, yes fuckwittery (love the name BTW) mortgage was with same provider, borrowing more not less, selling and purchasing on same day, solicitor has now sorted, but still £500 difference between what the mortgage lender told me last week and the 'settlement figure' they have given to solicitors. Off to query that now!

I was panicking last night because the same provider thing came up in my googling and our old mortgage is with C&G but the new one seems to be with LLOYDS TSB I know they are all part of the same group but we didn't get a choice in the matter! But thankfully it's all sorted, thanks again.

Runningchick123 Fri 13-Sep-13 09:42:39

It depends on the specific terms of your mortgage. A lot of portable mortgages charge an early repayment fee if you want to increase your borrowing when you be home. What you get to keep is the same interest rate, so I suppose that's why they get away with calling it portable. If you were not borrowing extra then there shouldn't be any penalties.
You need to check the terms of your original mortgage to see if this is mentioned and if it is then ask for a refund of the penalty charges.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now